Thursday, November 16, 2017

Bourse shocks prompt TCCIA Investment to change tack

TCCIA Investment Plc shareholders follow

TCCIA Investment Plc shareholders follow proceedings during the 12th annual general meeting in Dar es Salaam last week. PHOTO|THE CITIZEN CORRESPONDENT 

By Gadiosa Lamtey @gadiosa2

Dar es Salaam. It was established in 2005 to specifically tap potentials of the stock market but TCCIA Investment PLC now seeks to diversify its portfolio following shocks in the stock exchange.

The company - owned by mostly old men and women - started with a capital of Sh1.9 in the year and bought shares in seven counters of the companies listed on the Dar es Salaam Stock Exchange.

By 2014, the capital had expanded to Sh34 billion following gaining of shares in the bourse.

However, some other counters depreciated in the recent years and reduce the company’s capital from the apex of Sh34 billion in 2014 to Sh27.8 billion in 2016.

In year 2016 the company’s performance decrease of 61 per cent below the net profit tax realized in 2015. The net profit before tax was Sh220 million compared to Sh564.2 million earned during the previous year.

And now, the company looks to diversify its investment into agriculture and create another subsidiary that will help in generating more revenue that revealed in the Company’s 12th Annual General Meeting by chairman of the board Mr Aloys Mwamanga Since the company commenced operations twelve years more than 95 per cent of the investment portfolio has been in the form of equities of listed companies.

However the board is targeting investment in fixed income financial instrument, government securities, corporate bonds and interest earning bank deposit.

“We believes that investment income earning assets offers good trade off especially when the equity market is less attractive as is the case now,” he stressed

Although the board floated the company’s shares during the months of February and March this year the results were not encouraging.

As a results the board has decided to scale down implementation of the projects which had originally been identified for implementation during 2017. Due to that downfall the share company will focus on the implementation of constructing warehouses in Mikindani district, Mtwara where the land is located at a strategic areas has already secured.

However the management has already submitted the request proposal to Capital Markets Securities Authority (CMSA) to that can approval the company entered into the DSE.

Further he said the aim of listing shares in stock market as to enable shareholders to determine the true value of the shares and also offer opportunity to investors who wish to enter or exit to freely do so within minimum cost in terms of time.

The management also explore the possibility of applying for a brokerage license so as to diversify its source of revenue as well as minimize payment of commission to brokers who handle transactions from time to time.

Expounded further the Company’s CEO Donald Kamori current there are total of 3430 shareholders, adding only last year over 1000 members were joined.

“Despite the up and down we experienced last year but still the company is stable as the capital increased so we will go to other sector in order to extend our capital like in Mtwara,” he said

According to him, the Mtwara project the feasibility study already been conducted in near future the construction would kick start, adding the target to help the farmers within the area so that can benefit from their agriculture.

But also there are other real estate’s projects in Dodoma that would construct of a parking for trucks. The board will however continue with efforts for securing land in Tanga for the purpose of constructing warehouses.

However the directors emphasized that two projects will be implemented only after conducting detailed feasibility studies whose results show that the projects are viable on a sustainable basis.